This paper characterizes the optimal combination of monetary policy and financial regulation in a quantitative infinite horizon model with a risk taking channel of monetary policy. The model economy is rich enough to match main characteristics of the U.S. economy and its financial sector, yet...

Most industrialized countries confront at the same time an increasing life-span, low current birth rates and the retirement of the relatively large post World War II generation. This paper considers different policies as potential solutions to the implied funding problem of any Pay-As-You-Go...

Consumer prices are not very responsive to movements in nominal exchange rates and their response has fallen considerably in Canada since the mid 1980s. This paper explores two of the most likely explanations for this decline in exchange rate pass-through to consumer prices: (1) lower inflation...